Mere order procurement on commission is not clearing and forwarding agent service under the Finance Act.

Mere procurement or booking of orders on commission basis for a principal does not fall within clearing and forwarding agent service under the Finance Act. The analysis applies the Larger Bench view that such activity, without additional clearing or forwarding functions, is outside the statutory definition. On that basis, the service was held not taxable as clearing and forwarding agency service and the demand could not be sustained.

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Issues: Whether mere procuring or booking orders on commission basis for a principal constitutes the service of a clearing and forwarding agent under the Finance Act.

Analysis: The appellants were found to be only procuring orders for the principal on commission basis. The issue was treated as settled by the Larger Bench view that mere procurement or booking of orders, without more, does not amount to rendering clearing and forwarding agent service within the meaning of the statutory definition.

Conclusion: Mere procuring or booking of orders on commission basis does not constitute clearing and forwarding agent service under Section 65(25) of the Finance Act. The demand could not be sustained.

Ratio Decidendi: Mere procurement or booking of orders for a principal on commission basis, by itself, is not clearing and forwarding agency service within the statutory definition.

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